Manangatang growers dispute insolvency evidence in Lempriere Grain court hearing

A farming family has disputed claims by a Lempriere Grain director it sought new payment terms on a supply contract.

Questions have arisen over the evidence given by Lempriere Grain director Jonathan Holdsworth in the Federal Court on grower contracts.

A Manangatang farming family is disputing the court evidence of a key figure in the collapse of grain trader Lempriere Grain.

Asked under oath in the Federal Court last week whether creditors with outstanding payments beyond 90 days was evidence the grain buyer was trading while insolvent, Lempriere Grain director Jonathan Holdsworth said growers sometimes wanted to push payments for grain supplied beyond June 30 for taxation purposes.

Mr Holdsworth agreed with barrister for the liquidators Anthony Cheshire SC that general payment terms were for payment within 30 days, but some were extended for up to nine months.

“We had several suppliers who invoiced us for grain and did not wish to be paid until the following financial year,” he said.

He told the court that debts were being paid “as and when they fell due”.

Of a list of creditors owed money beyond 30 days in January, 2019 — two months before the company was placed in administration by Lempriere Grain’s directors — Mr Holdsworth nominated the Rich Family Trust and KJ & TF Ryan Family Trust as two grain suppliers he vaguely recalled wanting extended terms in the past.

But Trudy Ryan remembers things differently and told The Weekly Times her family’s trust had not requested payments being extended beyond normal 30-day contract terms as they normally liked to be paid expediently.

She runs a grain farm at Manangatang with husband Kevin and son Leeton.

Ms Ryan said the family became increasingly anxious about eight late grain payments due on December 28, 2018, and January 4 and ll in 2019.

She said Lempriere Grain grain buyer Kym Dolling sought a to renegotiate a new payment plan in February, 2019.

An email of March 1 seen by The Weekly Times states Mr Dolling was “waiting for Singapore to confirm money to be transferred this week”.

An email of March 7 shows Ms Ryan demanding payment within one day for some of the deliveries.

On March 18, 2019, Ms Ryan sent a letter of demand to Mr Holdsworth after Lempriere Grain did not make payment.

Mr Holdsworth and the other Lempriere Grain director, Singapore-based Ajay Aggarwal, put the grain buyer in administration on March 21 with debts of more than $19 million.

The liquidators have questioned Mr Holdsworth, Mr Aggarwal and former director Will Lempriere about the failure of Lempriere Grain in a public examination before a Federal Court registrar over three days in the past month.

Mr Holdsworth did not respond to The Weekly Times over claims by Ms Ryan.

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